1. What does the level of a nation's GDP measure? What does the growth rate of GDP measure? Would you rather live in a nation with a high level of GDP and a low growth rate or in a nation with a low level of GDP and a high growth rate?
2. In what way is a college degree a form of capital?
3. Explain how higher saving leads to a higher standard of living. What might deter a policymaker from trying to raise the rate of saving?
4. Why would removing a trade restriction, such as a tariff, lead to more rapid economic growth?
5. How does the rate of population growth influence the level of GDP per person?